I thought I would post my two cents regarding faction switching/loyalty points and the IS vs Clan balance debate (get ready to read):
Faction:
I think that playing as a certain faction for a lengthy amount of time should increase the LP in that faction and decrease the LP in other factions. Price of mechs belonging to a faction should be based on LP of that faction so switching factions just to buy a certain mech wouldn't work because the price wouldn't decrease much if you have been playing in another faction for most of your playing.
For Mercs, LP to factions would be based on matches on same team/enemy team with that faction. If the merc group is mostly neutral, prices wouldn't change much but maybe add an option for the higher ups in the merc group to decide if the merc group is more selective with what factions it works with (ex: you are playing in a merc group but your group wants to be allies with Davion or doesn't want to be allies with Steiner and Liao, your merc group could do that)
As for the Inner Sphere factions and Clan factions, my opinion would be players being able to choose an Inner Sphere faction and a Clan faction due to the fact IS vs Clan matches wouldn't allow Clan mechs on the IS side and vice versa. If you were a member of an Inner Sphere faction, you wouldn't be able to use your Clan mechs and switching back a fourth between Inner Sphere and Clan factions would be cumbersome. The game would just keep your IS stuff and your Clan stuff separate (don't know about C-Bills and MC though).
IS vs Clan balance:
A lot of people seem to be complaining that Clan tech isn't going to be as OP compared to IS as TT had. What you have to take into account here is this is a shooter, not an RTS or turn based strategy board game. Balancing Clans by having more IS players on the other team would just promote players using Clan mechs more and IS mechs less which would end up having too few IS players which would most likely end up with Clan vs Clan matches being commonplace while IS vs Clan being uncommon or rare (and IS vs Clan is suppose to be a major part of MWO, why else would the Clan invasion be the major event chosen to take place during the game's time period?).
Past Mechwarrior titles aren't a great example of balanced tech either because they were largely based around single player. Multiplayer just became who had Clan Tech and who didn't leaving IS tech obsolete.
For anyone trying to say IS could be a competent adversary to the Clans based on teamwork, I have two things to bring up:
Clan players can work together too and most players drop solo (according to PGI's data they released not too long ago (late Feb 2014):
True, if the IS team had more players and they were actually working together, that would mean more players that are coordinated, but that would only apply to 12 man groups. 4 man groups would most likely be stuck with 8 other random players with no teamwork. More often then not, there would be games where both sides have little teamwork and the victory is mostly dictated by which side takes the most damage. There is always the possibility that a 12 vs 5 system would deter players away from being a clanner because of the smaller team factor that may make some players feel overwhelmed by having two enemies to fight by yourself essentially but I still feel it would be the smarter idea to make Clan mechs something that is different rather than simply more powerful.
Correct me if I'm wrong but I distinctly recall reading (or perhaps hearing in a podcast or interview) that PGI has stated they plan on balancing Clan tech so it isn't completely outclassing IS but instead providing something different and unique. I believe this is the best path for them to take so players choose which to go with (IS or Clan) based on personal preference and not based on Clans being superior but not so cost efficient. If the two are balanced solely by Clans being less player per match with superior tech that more expensive, there will be players that either join the Clans because they have the money or they will just save up C-Bills and grind until they have enough to join the Clans. It is true that Clan balance needs to avoid being more of the same but the Clans still need to be an alternative, not a step up. PGI needs to make sure that IS tech is still viable on the battlefield. Sure, Clan mechs should be slightly better so that a 12 vs 10 (IS vs Clan) would be an even fight. If Clan mechs were the powerhouses TT had, teams would probably have to be balanced along the lines of 12 vs 5 which would promote joining Clans because there would be more enemies to shoot earning you more damage dealt and kills made. Yes this could be countered by decreasing the C-Bills and XP earned as a Clanner but I doubt that would stop everyone. The allure of being the toughest thing on the battlefield would be enough to convert many IS players to Clan.
When it comes to shooters, balancing by having strength vs numbers isn't the best road to take.
If anyone disagrees, I will respect their opinion but this is my opinion and I stand by it.